Business Owners Insurance by Altima

Employment Practice Liability Insurance provided by Altima Auto Insurance Agency

Employment-related risks are among a business’s most potentially damaging exposures, often centering around sexual harassment, wrongful termination, or discrimination. Employers of all sizes face potential damage from employment practices liability (EPL) lawsuits, with potential consequences that include financial disaster and/or irreparable damage to an organization’s reputation. We can help your organisation take coverage for this.
What is Employment Practice Liability Insurance ?

Employment practices liability insurance, known in the trade as EPL insurance or EPLI, provides coverage to employers (PDF) against claims made by employees alleging:

  • Discrimination (based on sex, race, age or disability, for example)
  • Wrongful termination
  • Harassment
  • Other employment-related issues, such as failure to promote

Large corporations typically have substantial employment practices insurance coverage in place and are prepared to deal with just about any employment lawsuit. However, small or new businesses are often the most vulnerable to employment claims (PDF). That’s because they usually lack a legal department or employee handbook detailing the policies and procedures that guide hiring, disciplining or terminating employees.

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How can we reduce Employement Practice Liability ?
What is covered by Employment Practice Liability Insurance?
  • Defense costs (court fees, attorney fees and related costs).
  • Payment of settlements and/or judgments up to the policy’s limits.
  • Any fines or penalties levied by government agencies.

EPLI policies cover business owners as well as directors, officers and managers. Some policies also cover employees. Additionally, you can buy third-party policies to cover claims brought by non-employees, such as clients.

What is the Importance of Employement Practice Liability Insurance?

There has been a rise in U.S. employment dispute claims against businesses of varying sizes and across industries in recent years. Allegations of everything from workplace discrimination and privacy invasion to defamation and retaliation are being reported by employees who believe their rights have been violated. Even the most innocent business owners with sound business practices and personnel policies are vulnerable to claims of intentional and unintentional infractions.

It’s a popular misconception that these lawsuits are covered under Workers’ Compensation Insurance but a separate type of professional liability insurance provides the necessary coverage. The importance of Employment Practices Liability Insurance (EPLI) extends beyond protecting your business’ financial assets in the event that you need to settle a claim or judgment, but it is also critical when one is filed.

The question for any firm is no longer whether it will face an employment practice liability (EPL) claim, but rather, when it will, how much it will cost, and what damage it might cause to reputation and brand image. Standard policies, procedures, and supervisory training are no longer enough to protect companies from the high costs of employment litigation.

Contact us to learn more about the importance of Employment Practices Liability Insurance and additional ways to protect your business today.

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As an independent agency, Altima Auto Insurance Agency
Helps you find the right Employment Practice Liability Insurance Coverage
Contact Us
Arlington, Texas
814 W. Arkansas Ln. Arlington, TX 76013
We extend coverage to individuals and businesses in Fort Worth, Dallas, Duncanville, Arlington, Garland, Irving, River Oaks and Haltom City